Feature/OPED
X-Raying the Hidden Leadership Drive in Anioma-Born Tonna Okei
By Jerome-Mario Utomi
Anioma, loosely translated as good land, is situated in Delta State and precisely forms the Delta North Senatorial District in the present-day Delta State, South-South geo-political zone of Nigeria.
The people of Anioma are predominantly Igbo-speaking. In terms of population and landscape, Anioma nation as it is usually referred to could be likened to a dot in the map of Nigeria. But the people, in material terms, have through hard work, planning and improvising, established themselves in all critical sectors-finance, science/technology, sports, education and most importantly public leadership.
Also worthy of underlining is the fact that Anioma people daily manifest signs of a people that have left behind third-world challenges of illiteracy and poverty, to become a successful centre for the dissemination and distribution of the best human capital resources across the nation and beyond.
While this author celebrates these identified as well as yet-to-be-identified excellent human capitals of Anioma origin scattered all over the globe, assisting organizations and development agencies make far-reaching decisions, this piece on its part, specifically acknowledges the silent, salient and outstanding public leadership exploits at the global stage of a yet to be celebrated Ekuku Agbor born, Grand Knight Emeritus, President of the Organization of African Unity South Carolina, a Member of the Board of Trustee of the Knights of Columbus, a Notary Public, a Team Leader, Community leader, cultural enthusiastic and, Quality Assurance Bureau of the South Carolina Department of Health and Human Services.
His resounding clamour for good governance and creative approach to people-focused public leadership recently came to mind after reading a news report on how the city of Columbia, headquarters of South Carolina, United States of America (USA), came alive as Tonna Okei led Pan African Inter-Nation, an umbrella socio-cultural organization of all Africans resident in South Carolina, held its second edition of Jollof Rice Competition In South Carolina.
Aside from being an annual event by Okei’s African residents in South Carolina, USA, to among other objectives celebrate the African continent’s rich cultural heritage, particularly in the area of food, very newsy about this year’s gathering is that it had the Ghana Ambassador to the US, Her Excellency, Madam Ambassador Hajia Alima Mahama, who was on a state visit to South Carolina, in attendance among other dignitaries, and fundamentally provided an avenue for bilateral talks between the members of the South Carolina Organization of Africa Unity (OAU), Pan African Inter-Nation and the Ghana Embassy in the United States of America.
Beyond this latest event, there are of course more significant and critical leadership attributes daily displayed by Okei that amply qualify him as a nationalist and good governance advocate whose efforts must not be allowed to go with political winds uncelebrated but harnessed for the overall interest of the nation.
Adding context to the discourse, Knight Sir Tonna Celestine Okei was born on January 16, 1975, in Surulere, Lagos state, a few days after the Udoji commission pay increase started and his mother collected her first payment and thus named him Tonna (Praise God). Tonna was born in the family of Lady Felicia Okei and Barrister Sir George Okei, a former Commissioner of Local Government and Chieftaincy Affair in the now-rested Bendel state.
He attended Ika Grammar School, Agbor, Delta State, Government College Eric Moore, Command Day Secondary school, Army Cantonment Ojo Barracks Lagos and Government College Ughelli, the University of Benin, Georgia State University and the University of South Carolina graduating with an Associate in Social Works, Bachelor of Social Work and Master of Social Work. He holds an Oracle DBA 10i certificate in Database management and is a UNIX-certified Manager, he holds an associate in public management. Tonna is a Behavioural Analyst and Quality Assurance guru who has lived in the United States for about 17 years (2007).
Despite this long sojourn in a foreign land (United States of America), he is daily consumed with how to make Agbor kingdom, Delta state and the Nation Nigeria, a geographical entity, where peace, justice and holistic and sustainable development reign supreme. His promotion and adoration for African culture is not only exemplary but legendary.
As part of his persistent resolve to foster collaboration, attract development and international respect to Delta state and Nigeria as a whole, Tonna has, at different times and places met and discussed with the President of Ireland, Mary McAleese, addressed South Carolina Bishop conference, hosted the Major of Accra, Ghana, endorsed then senatorial candidate but now senator Tameika Dorsett of the United States of America, received in audience the Sheriff of the Richland County, Leon Lott, Visited the President of the University of South Carolina, addressed South Carolina Bishops Conference, addressed the Mayor and Council, Eastover Council, hosted/honoured by the SC Legislative Black Caucus, received the Mayoral Community leadership award, advocated for stricter gun laws in the United States, visited the Irish Deputy Senate President in the company of the former First Lady of Edo State, Mrs Eki Igbinedion among others.
Again, in keeping with his development-oriented culture, Tonna, a detribalized Nigeria, who is married to Mrs Oluwatoyin Okei (Yeye Asoju Oba), from the South Western Nigeria and blessed with six children and a granddaughter, recently brokered/ facilitated a meeting between key political figures in Delta state and management of South Carolina University, aimed at seeing the Delta state-owned Universities in Asaba and Agbor, establish affiliate relationship with the Faculty of Education, South Carolina, USA, where anyone graduating from Department of Education in Asaba or Agbor would already have passed their state exams in South Carolina and qualify for teaching job in South Carolina.
Asked by newsmen to give insight as to what inspired such a move, Tonna responded that; there is an acute shortage of teachers in South Carolina. So, the aim here is to accommodate the State Teacher Certificate into the curriculum in Asaba and Agbor. So, what does that mean? If you are graduating from the Department of Education in Asaba or Agbor, you have already passed all the certifications in South Carolina. So, when you graduate from the Department of Education in Asaba or Agbor, you are employed in South Carolina. Do you know what that means for Asaba and Agbor? He queried.
He further argued that with such a mutual relationship with South Carolina in place, the students in West Africa will want to go to Asaba and Agbor because they know that when they graduate from the Education Department, they already have a job in South Carolina waiting for them. So, that is one of the major factors that will make Asaba and Agbor the centre of education in West Africa.
Okei observed that it is going to make the University sustainable. That would make those two universities sustainable. They would not need to depend on the governor as any parent in West Africa, when they hear of this information, they can be sending their kids to Asaba and Agbor because when they graduate, they already have a job waiting for them.
According to him, every year, South Carolina goes to Romania, South Africa, and non-English speaking nations to employ teachers and yet, we have teeming youths in Asaba, in Agbor, in Delta state. You know what that means for Anioma. If your brother or nephew can go to education department in Asaba and Agbor and they graduate, there’s a job already waiting for them in South Carolina. That is going to be a landmark project, he concluded.
As someone laced with unwavering commitment to, and respect for the traditional stool of Dein, the revered paramount ruler of Agbor kingdom and African culture, Okei was visibly present when His Majesty (HRM) Dein, Doctor Kiarekugbei was honoured in faraway United States of America by South Carolina legislative for his good works, for Agbor and the world at large.
In the area of security, it was in the news that when Rt Hon. Festus Okoh, Member of the Delta state House of Assembly (DTHA), visited the United States for the Agbor Convention 2023, Sir Tonna Okei went with him to the Sheriff of Richland County where they discussed how the sheriff can assist Delta state increase capacity in Security Network, diplomacy and respect for rule of law. The sheriff reportedly expressed to the delegation, his willingness to work with and render such service to Delta State as soon as the necessary invitation is received from the state government and other relevant agencies.
Also, in the area of legislative matters, Tonna reportedly engineered a meeting with the South Carolina Legislative arm where the Hon. Chuky Dandy met with the Chairman of the State Legislative Office. They reportedly discussed areas of mutual benefits where Delta State House of Assembly members can come down to South Carolina for a retreat or to observe them doing plenary; and discuss how they can add value to Delta state legislature in terms of what it means to be a legislator and how they can use the legislative arm in South Carolina to assist Delta in terms of education, science and technology.
For example, for most of the science equipment, they no longer need or have in surplus, they can adopt Delta State as a twin city where they offer Delta state equipment for free using OAU as a platform. They agreed that they would sign a Memorandum of Understanding (MOU) when the state legislature visits South Carolina.
In recognition of their contribution to the black race in the United States, a special guest of honour and representative of the Haiti community in South Carolina at a recent function in the United States declared that Tonna be known and addressed as the Kwame Nkrumah the second, a motion which was wholeheartedly adopted.
Now, here at home, looking at the above efforts and selfless contributions and celebration of this citizen by the people of other nations, this piece holds the opinion that it will be highly rewarding if he is consulted or better still, drafted by the state or the nation into mainstream responsibility to assist the people of Delta state and Nigeria at large find sustainable solution to the present hydra-headed leadership predicament afflicting the nation. This, in my view, should be done not for political reasons but for the survival of our democracy and the people.
Jerome-Mario, a media specialist, writes from Lagos Nigeria. He can be reached via je*********@***oo.com/08032725374
By Sani Abdulrazak, PhD
The fundamentality of securing our lives and property, especially in Northern Nigeria, cannot be overemphasised. Any other responsibility comes after this for a responsible government. Sadly, for close to two decades, Northern Nigeria has been a gallows of despair, rape, and death. From banditry and freelance killings that scratch, pierce, and are ruining the North West, to the bloody insurgency that barks and bites in the North East, to farmers-herder conflicts in the North Central, leaving behind a scorching trail of rancour and sorrow of unimaginable proportion for millions, Kaduna State was one of the worst-hit states in terms of banditry and kidnappings, ethno-religious conflicts, and freelance killings.
But in the last three years, the state has metamorphosed into one of the most peaceful in the region via the Kaduna Peace Model. More so, the recent endorsement of the Kaduna Peace Model by the Human Rights Writers Association of Nigeria (HURIWA) deserves thoughtful examination rather than unquestioning acceptance. HURIWA’s position has brought renewed attention to Kaduna State’s approach to conflict management and peacebuilding. The endorsement raises an important policy question: Has Kaduna developed a governance model capable of reducing conflict in a sustainable manner, and if so, why have other northern states not moved to adapt it? These questions deserve answers rooted in facts rather than political loyalties.
The phrase “Kaduna Peace Model” does not point to or refer to a single law, policy document, or institutional framework. Rather, it describes an evolving approach that combines conventional security operations with community engagement, dialogue among stakeholders, collaboration with traditional and religious institutions, support for security agencies, conflict mediation, and development interventions in communities affected by violence. Instead of relying exclusively on military responses, the approach seeks to address some of the social and political conditions that often sustain insecurity. Whether this amounts to a distinct governance model remains open to debate. Nevertheless, it reflects a broader understanding that lasting peace requires more than the deployment of armed personnel. Security may suppress violence temporarily, but durable peace depends equally on trust, inclusion, justice, and economic opportunity.
The next question is unavoidable: Has the approach worked?
The evidence suggests that Kaduna today presents a different security picture from that of three years ago, although not an entirely peaceful one. Around 2023, the state remained one of Nigeria’s most violence-affected regions. Conflict trackers documented frequent attacks, kidnappings, and communal violence, with 85 recorded conflict incidents resulting in 261 fatalities in the final quarter of 2023 alone. Entire communities lived under constant fear, farming activities were disrupted in several local government areas, and many roads within the state became synonymous with insecurity.
Recent years, however, indicate a significant degree of improvement in almost all parts of the state. Some communities have resumed agricultural activities, commercial movement has improved along previously troubled corridors, and government engagement with local communities has become more visible. These developments suggest that violence has, in almost all areas of the state, reduced in intensity. Yet such observations should not be mistaken for a declaration of victory.
A meaningful assessment, however, goes beyond casualty figures alone. It must also consider whether displaced persons have returned home, whether schools operate without interruption, whether farmers cultivate their lands without fear, whether markets function normally, and whether citizens genuinely perceive improvements in their daily security. Peace, as we know it, is not merely the absence of gunfire; it is the restoration of ordinary life.
It is within this context that HURIWA’s endorsement should be understood.
Civil society organisations play an important role in recognising promising governance practices, encouraging innovation, and stimulating public debate. Their endorsements can influence policy conversations and encourage governments to learn from one another. However, endorsements are neither official certifications nor substitutes for independent evaluation. Every governance model, regardless of who praises it, must remain open to scrutiny, evidence, and continuous improvement.
The larger question, therefore, is whether the Kaduna experience can be replicated elsewhere across Northern Nigeria.
It is a fact that certain principles underlying the Kaduna approach are broadly applicable. Community dialogue, cooperation between government and traditional institutions, investment in local peacebuilding, and stronger collaboration with security agencies are strategies that have relevance beyond Kaduna’s borders. But due to the non-uniformity and complexity of the hydra-headed nature of insecurity across Northern Nigeria, it becomes almost impossible for the model to work across the whole of Northern Nigeria. The security dynamics of Kaduna differ from those of Zamfara, Katsina, Sokoto, Niger, Benue, Plateau, or Borno. Banditry, communal conflicts, terrorism, farmer-herder disputes, and transnational criminal networks vary significantly in their causes and manifestations. A strategy that succeeds in one environment cannot simply be copied into another without adjustment.
This probably explains why other northern governors have not simply adopted what is popularly described as the Kaduna Peace Model. Effective governance is context-specific. Every state possesses different demographic realities, institutional capacities, historical grievances, and security challenges. Replication without adaptation risks producing disappointing outcomes. If northern states are to draw lessons from Kaduna’s experience, several adjustments are necessary. Independent conflict assessments should precede policy adoption. Local governments must become stronger partners in peacebuilding. Traditional and religious leaders should be integrated into structured dialogue mechanisms rather than informal consultations alone. Reliable security data should guide decision-making, while transparent monitoring systems should measure outcomes beyond political narratives. Economic recovery, youth employment, and access to justice must complement security interventions if peace is to endure.
Despite its widely acknowledged contributions to reducing insecurity and fostering dialogue over the past three years, the Kaduna Peace Model is not without significant shortcomings. One of its most notable weaknesses is the absence of a clearly documented framework that defines its philosophy, guiding principles, operational structure, implementation strategy, monitoring indicators, and evaluation mechanisms. Consequently, much of what is described as the “Kaduna Peace Model” exists in practice rather than in a codified, replicable document, making independent assessment, institutional continuity, and adaptation by other jurisdictions difficult. Furthermore, the model remains heavily dependent on the commitment of the incumbent political leadership, raising concerns about its sustainability beyond the current administration. While it has contributed to stabilising many communities, it has yet to comprehensively address the underlying structural drivers of conflict, including competition over natural resources and historical grievances, and questions persist regarding transparency, measurable performance indicators, accountability, and the extent of participation by women, youth, victims, and other marginalised groups. These limitations suggest that although the model has demonstrated practical value, its long-term effectiveness would be strengthened through formal documentation, institutionalisation, a robust implementation framework, and regular independent evaluation.
Possibly the greatest lesson from Kaduna is not that it has discovered a perfect formula for peace. No society has. Rather, it demonstrates that conflict management increasingly demands governance approaches that extend beyond military deployments alone. Therefore, HURIWA’s endorsement should not be viewed as the conclusion of the conversation but as its beginning. Whether the Kaduna Peace Model becomes a genuine reference point for other states will depend less on public commendation than on rigorous evidence, independent evaluation, and its ability to produce durable improvements in the lives of ordinary citizens.
In governance, therefore, the true measure of peace is not the number of endorsements the Kaduna Peace Model receives. It is the number of lives it has protected, the communities restored, and the confidence with which citizens wake each morning believing that tomorrow will be safer than yesterday.
Sani Abdulrazak, PhD, is a writer, researcher and public affairs analyst based in Zaria, Kaduna State
Feature/OPED
$40bn Net Reserves, Record Wealth, Relentless Poverty: Who Is Nigeria’s Economy Serving Today?
By Blaise Udunze
No doubt, it was a welcome announcement that Nigeria’s net foreign exchange (FX) reserves have surged by an astonishing 1,233 per cent from about $3 billion to over $40 billion. This would ordinarily be the kind of economic milestone that inspires optimism, coupled with gross external reserves of about $52.52 billion, which are sufficient to finance roughly 11 months of imports of goods and services. Penultimate week, the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, presented the development at the end of the 306th meeting of the apex bank’s Monetary Policy Committee (MPC) as evidence that its reforms are working.
It is no surprise that around the same period, one would say that another important economic event occurred with the government sharing more money than ever before with the federal, state, and local governments, as the Federation Account Allocation Committee (FAAC) distributed a record N2.55 trillion, representing an increase of N250 billion over the N2.3 trillion shared in the preceding month.
Of course, the official figures are impressive numbers. Yes, anyone would conclude that the economy is becoming stronger, more stable and better positioned for growth. While this suggests stronger public finances, it also raises the question of whether these larger allocations are producing tangible improvements in the lives of ordinary Nigerians. More interesting is that another set of figures tells a completely different story.
According to the World Bank’s newly approved Country Partnership Framework for Nigeria, 61 per cent of Nigerians now live below the poverty line, while about 79 per cent are either poor or vulnerable to falling into poverty. More than 139 million Nigerians live below the poverty line. Over 86 million people lack access to electricity, while millions of young Nigerians enter the labour market every year with little prospect of decent employment.
The contradiction could not be starker. If reserves are rising, government revenues are increasing, and governments at all levels are receiving record allocations, why are the lives of ordinary Nigerians becoming more difficult?
This is the question policymakers must answer not with statistics, but with tangible improvements in the lives of citizens. If government agencies engineering these figures must know, these are not merely economic statistics; they are the lived realities by which citizens judge any government.
Foreign exchange reserves are not an economic trophy. They are a means to an end. Strong reserves are expected to stabilise the currency, reassure investors, strengthen the country’s ability to withstand external shocks and create an enabling environment for investment, production and employment.
But reserves alone do not feed families nor would they reduce their housing rents. They do not lower transport fares. They do not reduce school fees. They do not make healthcare affordable. Nor do they automatically create jobs.
Ultimately, this is to say that the success of macroeconomic reforms must be measured not by the strength of the CBN’s balance sheet but by the wellbeing of the Nigerian people.
Historically, unlike our dear country, countries that consistently build substantial foreign exchange reserves do so on the back of strong economic fundamentals. The fact is that they maintain sustained trade surpluses, export diversified products, attract large volumes of long-term foreign direct investment (FDI), develop globally competitive manufacturing industries and continuously improve productivity.
Nigeria, unfortunately, still struggles on nearly all these fronts. The country’s export earnings remain overwhelmingly dependent on crude oil. Non-oil exports remain relatively insignificant. Value-added manufacturing exports are weak. Another area that raises concern is agriculture, which continues to export mostly raw commodities rather than higher-value processed products despite being known previously as the country’s mainstay. With all these so-called developments, Nigeria still imports refined petroleum products, machinery, pharmaceuticals, industrial inputs and even food that could be produced locally.
This naturally raises an uncomfortable but legitimate question that requires an answer. Yes, it would be necessary to ask: How exactly has Nigeria grown and accumulated over $40 billion in net foreign exchange reserves without the structural fundamentals that typically support such reserve growth?
The apex bank has continued to credit exchange-rate reforms, improved transparency, stronger investor confidence and increased diaspora remittances. Well, it would be said that these achievements deserve recognition.
However, they do not completely explain the scale or, more importantly, the sustainability of the reserve accumulation.
Nigeria has not consistently recorded the large trade surpluses associated with countries that rapidly accumulate reserves. Oil production remains below historical capacity. Export diversification remains limited. Ease of doing business continues to be constrained by multiple taxation, infrastructure deficits, insecurity, policy uncertainty, logistics bottlenecks and unreliable electricity.
Without addressing these structural deficiencies, reserve accumulation risks becoming more financial than productive.
Equally important is the question of foreign direct investment. Governor Cardoso has argued that improved macroeconomic stability is attracting foreign investors. That may well be true. But confidence alone does not build factories.
The real question is how much fresh FDI has actually entered Nigeria’s productive sectors? How much has gone into manufacturing? How much into agro-processing? How much into export-oriented industries capable of generating sustainable foreign exchange earnings and creating jobs?
If reserve growth is being driven largely by short-term portfolio investments attracted by high interest rates rather than long-term productive investment, then Nigeria remains vulnerable. Portfolio investors can exit as quickly as they entered whenever global financial conditions change.
The unarguable fact is that foreign direct investment, by contrast, creates factories, expands production, develops supply chains and creates lasting employment. Nigeria desperately needs more of the latter.
The CBN also points to diaspora remittances as a growing source of reserve accumulation, projecting inflows of approximately $1 billion every month before the end of the year. Again, this is encouraging.
Again, the country will not be tired of asking questions because several of these questions deserve closer examination. How much of these remittances represent genuinely new inflows rather than funds previously routed through informal channels? Come to think of it, how much of these remittances finance productive investments instead of household consumption? Can diaspora remittances realistically become a permanent substitute for export competitiveness?
No economy has ever industrialised on remittances alone. A nation cannot sustainably depend on the sacrifices of its citizens abroad while failing to create opportunities for them at home.
Beyond the reserve figures lies another troubling contradiction. This is more disturbing because every month, FAAC distributes unprecedented sums to governments across Nigeria. Yet again, with daily regret, the average Nigerian struggles with deteriorating public services.
Honestly speaking, it has become so frustrating that the majority of the people who yearn for pleasant or attractive experiences are struggling as roads remain poor, public hospitals remain overstretched, schools continue to decline, electricity remains unreliable, water infrastructure remains inadequate, and youth unemployment remains widespread. Worst still, think of the cases as the nation continues to grapple with rising inflation, worsening poverty, declining purchasing power, struggling businesses and persistent insecurity.
One major contradiction is that if revenues continue rising while poverty deepens, then one unavoidable question must be asked: Where is the money going? Another pertinent question: How can the citizens be surrounded by water and still suffer from thirst or soap lather in their eyes?
This has been the predominant worry in the minds of many even as the World Bank itself acknowledges this disconnect. While praising recent macroeconomic reforms for improving fiscal stability, strengthening foreign reserves and restoring investor confidence, it concludes emphatically that the gains have not translated into meaningful improvements in living standards.
Ironically, despite the claims of declining inflation, it continues to erode purchasing power. Social protection remains weak. Most Nigerians remain trapped in low-productivity informal employment.
One contradicting and astonishing step taken recently is nowhere more evident than in the Central Bank’s monetary policy. Consider this: despite a marginal decline in headline inflation to 15.91 per cent in June 2026, the Monetary Policy Committee retained the benchmark Monetary Policy Rate (MPR) at 26.5 per cent, alongside a 45 per cent Cash Reserve Ratio (CRR) for commercial banks.
The decision reflects understandable caution. The CBN remains concerned that escalating geopolitical tensions in the Middle East could increase global energy prices, worsen imported inflation and reverse recent gains in price stability.
From a monetary policy perspective, this caution is defensible. But from the standpoint of businesses and households, the consequences are profound. An interest rate of 26.5 per cent inevitably translates into prohibitively expensive bank lending.
The ripple and adverse effects have led to manufacturers struggling to finance expansion. Another tough aspect is seeing the small and medium-sized enterprises, the backbone of employment generation, find access to affordable credit increasingly difficult. Entrepreneurs postpone investments. Factories delay expansion. Potential employers reduce hiring. Economic growth slows.
Ironically, while it is understandable that high interest rates may help stabilise inflation and attract foreign portfolio inflows that support reserves, it should be made known that they simultaneously suppress domestic investment, production and job creation.
In other words, the same policies helping strengthen the country’s macroeconomic indicators may also be constraining the real economy. Even the celebrated decline in inflation deserves closer scrutiny.
The national inflation rate may have eased marginally to 15.91 per cent, but this national average masks severe hardship across much of the country, which continues to create perpetual pain.
How best can this be figured out if data from the National Bureau of Statistics show that 19 states and the Federal Capital Territory recorded inflation rates exceeding 30 per cent, with Niger State above 42 percent and Kogi State exceeding 41 per cent?
Food inflation continues to rise, driven by increases in the prices of tomatoes, pepper, beef, yams, garri and other staple foods.
Businesses themselves remain unconvinced. The Organised Private Sector has welcomed the marginal moderation in inflation but insists that prices remain painfully high for both consumers and businesses.
Leaders of small business associations argue that market realities tell a different story from headline statistics. For millions of Nigerians, inflation is not measured by percentages. It is measured by empty shopping baskets. By reduced meal portions. By businesses shutting their doors. By families withdrawing children from school. By postponed medical treatments.
From a theoretical standpoint, macroeconomic stability is undoubtedly necessary. Without it, sustainable development is impossible. But it would also be agreed that macroeconomic stability alone is not sufficient. It can be argued further that economic reforms must eventually improve household incomes, reduce poverty, expand productive employment and raise living standards.
Otherwise, they risk becoming reforms that look impressive in economic reports but remain invisible in everyday life.
The truth remains that with the current situation, Nigeria therefore stands at a critical pivotal moment and the decisions taken now will determine its future.
The current reserve position should not become a destination for celebration but a foundation for deeper structural transformation. The country must diversify exports beyond crude oil. Strengthen manufacturing. Promote value-added agricultural exports. Improve electricity supply. Reduce the cost of doing business. Expand logistics infrastructure. Attract long-term productive investment.
In addition, support local industries with affordable financing. Strengthen institutions. Improve governance and ensure greater accountability for public spending. Only then will rising reserves translate into rising prosperity. Only then will record FAAC allocations produce visible development. Only then will macroeconomic stability become household stability.
The ultimate measure of economic success is not the number of dollars held in the Central Bank’s vaults. It is whether parents can afford school fees and housing rent. Whether young graduates can find decent jobs. Whether businesses can borrow, produce and expand. Whether families can afford food without sacrificing nutrition. Whether citizens feel that economic growth includes them.
Until those questions receive positive answers, one uncomfortable question will continue to linger. Who Is Nigeria’s Economy Serving Today?
Blaise, a journalist and PR professional, writes from Lagos and can be reached via: bl***********@***il.com
By Henry Obiekea
Nigeria’s banking industry is entering one of the most significant transformation periods since the 2005 banking consolidation exercise. The Central Bank of Nigeria’s (CBN) ongoing recapitalisation programme is more than a regulatory requirement—it is a strategic investment in the country’s financial future. If implemented successfully, it has the potential to strengthen financial stability, deepen credit access, improve investor confidence, and support a more inclusive and resilient economy.
In March 2024, the CBN announced new minimum capital requirements for commercial, merchant and non-interest banks. Under the new framework, international commercial banks are required to maintain a minimum paid-up capital of ₦500 billion, national commercial banks ₦200 billion, and regional commercial banks ₦50 billion. Merchant banks are required to hold ₦50 billion, while national and regional non-interest banks are required to maintain ₦20 billion and ₦10 billion respectively. The policy reflects the realities of today’s economy, where inflation, currency depreciation and expanding financial demands have significantly altered the capital required to support sustainable banking operations.
Many institutions have responded through rights issues, public offers, private placements, mergers and acquisitions in pursuit of the revised capital requirements. Beyond regulatory compliance, the exercise is already encouraging stronger governance, better capital planning and increased investor participation within Nigeria’s financial markets.
The recapitalisation conversation, however, extends beyond deposit money banks. The CBN has also introduced revised capital requirements for microfinance banks, recognising the critical role they play in extending financial services to underserved individuals, nano businesses and small enterprises. As the financial landscape becomes increasingly digital, stronger capital bases will enable these institutions to invest in technology, cybersecurity, risk management and product innovation while maintaining public confidence.
For Nigeria’s rapidly growing fintech ecosystem, although they are subject to different licensing frameworks depending on their operations, the broader regulatory direction is equally clear. Institutions that facilitate payments, tech-enabled banking, lending and savings are expected to maintain governance, capital and consumer protection standards appropriate to their respective licensing frameworks. This evolution is essential as fintechs continue to account for a growing share of financial transactions and provide services to millions of previously underserved Nigerians. Collectively, these reforms present a unique opportunity to reshape Nigeria’s financial ecosystem.
A stronger banking sector creates stronger economic outcomes. Well-capitalised financial institutions are better positioned to finance infrastructure, manufacturing, agriculture, housing and technology. They possess greater capacity to absorb economic shocks, support long-term lending and withstand periods of market volatility. More importantly, they can extend larger volumes of prudently underwritten credit to businesses that create jobs and stimulate economic growth.
For small and medium-sized enterprises, which contribute significantly to Nigeria’s GDP and employment, improved access to financing remains one of the greatest growth enablers. Recapitalisation should not be assessed solely by stronger balance sheets, but also by the extent to which additional capital supports productive economic activity.
Despite remarkable progress over the last decade, millions of Nigerians remain underserved by formal financial institutions. Expanding financial inclusion requires complementary approaches across commercial banks, microfinance banks, fintechs and other regulated financial institutions. Achieving meaningful inclusion requires collaboration across commercial banks, microfinance banks, fintech companies and regulators. Each institution serves different customer segments, yet all contribute towards a common objective: bringing more Nigerians into the formal financial system.
At FairMoney Microfinance Bank, recapitalisation aligns with our continued investment in responsible lending, digital banking capabilities, sound risk management and financial inclusion. We believe technology can complement prudent credit assessment and help extend access to financial services for eligible individuals and businesses.
As the recapitalisation programme progresses, success should ultimately be measured by broader outcomes: stronger institutions, deeper financial inclusion, increased SME financing, enhanced consumer confidence and sustained economic growth. Capital itself does not transform economies; how that capital is deployed does.
The Federal Government and the Central Bank of Nigeria have introduced reforms aimed at strengthening the long-term resilience of the financial sector. Continued implementation of these reforms will be important in supporting financial stability and sustainable sector growth. These decisions require vision, consistency and regulatory discipline. While the adjustment process may present short-term challenges for some institutions, the long-term benefits for financial stability, investor confidence and economic development far outweigh the costs.
Nigeria possesses one of Africa’s most dynamic financial services sectors. With stronger capital foundations, responsible innovation and continued collaboration between regulators and financial institutions, the country is well positioned to build a banking ecosystem capable of supporting its development ambitions, empowering millions more individuals and businesses, and supporting inclusive economic development over the long term.
Henry Obiekea is the Managing Director of FairMoney Microfinance Bank
